Gathering and processing MLPs In this article, we’ll analyze the performance of MLP subgroups in February 2017. Among these subgroups, the gathering and processing subgroup, which includes Williams Partners (WPZ), ONEOK Partners (OKS), and MPLX LP (MPLX), benefited from a slight recovery in drilling activity. Gathering and processing MLPs’ throughput volumes are directly linked to […]
Top MLP gainers of February 2017 Southcross Energy Partners (SXE), which is involved in natural gas gathering and processing, was the top MLP gainer in February 2017. SXE, which was close to filing bankruptcy in 2016, gained 52% in February. However, it is still trading far below the levels it was trading at before the […]
ONEOK (OKE) is scheduled to report its 4Q16 earnings on February 27, 2017. Analysts expect its EBITDA for the quarter to be $483 million, a 13% increase compared to $427.9 million reported in 3Q16.
ONEOK (OKE) has been making focused efforts to increase its fee-based earnings through contract restructuring in ONEOK Partners’s (OKS) Natural Gas Gathering and Processing segment.
Enbridge Energy Partners’ (EEP) forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple is 10.7x.
In this series, we’ll analyze Enterprise Energy Partners’ price targets, segment-by-segment performances, leverage, distributable cash flow, capital expenditure, and distribution growth.
ONEOK (OKE) reported its 3Q16 results on November 1, 2016, after the market closed. Its 3Q16 analyst-adjusted earnings before interest, tax, depreciation, and amortization rose 14.4% from 3Q15.
ONEOK has been making focused efforts to increase its fee-based earnings through contract restructuring in ONEOK Partners’ Natural Gas Gathering and Processing segment.
ONEOK and ONEOK Partners are scheduled to report their 3Q16 results on November 1, 2016. Analysts expect OKE’s 3Q16 earnings before interest, tax, depreciation, and amortization to be ~$457 million.
ONEOK (OKE) has generated total returns of 86% so far in 2016. In comparison, KMI, OKS, and WMB have generated total returns of 35%, 40%, and -0.2%, respectively.
The Henry Hub-Mont Belvieu fractionation spread rose to $11.53 per barrel in the week ending March 25. The spread was $11.37 per barrel the previous week.
ONEOK (OKE) reported its 4Q15 results after the Market closed on February 22, 2016. OKE fell 1.8% in after-hours trading. This was the initial price reaction after the earnings announcement.
ONEOK’s Natural Gas Gathering and Processing segment contributed only 6% to the company’s 4Q15 EBITDA. The segment’s EBITDA decreased due to non-cash impairment charges.
ONEOK Partners’ (OKS) EBITDA growth in 4Q15 was driven by increased NGL (natural gas liquids) gathering and fractionating volumes from recently connected natural gas processing plants.
Spectra Energy Partners trades at a forward distribution yield of ~5.7%. This is lower compared to its five-year average forward distribution yield of 6.2%.
ONEOK has suspended capital expenditures for certain natural gas– related projects. It intends to resume work on these projects when “market conditions improve.”
After the separation of ONE Gas (OGS) and the closure of ONEOK’s (OKE) energy services segment in 2014, OKE now operates as a pure-play general partner of ONEOK Partners (OKS).
In the long term, if Treasury yields fall and the spread doesn’t change, energy MLP yields should also fall. This could mean a rise in MLP unit prices.
Of the analysts surveyed by Bloomberg, 55% rated Enbridge Energy Partners (EEP) a “buy,” and 45% rated it a “hold.” None of the analysts rated it a “sell.”
In this series, we’ll look at Enbridge Energy Partners’ revenue and EBITDA growth in 3Q15, the performance of its segments, and its distribution growth.
ONEOK Partners’ (OKS) forward distribution yield of 9.6% is 125 basis points higher than its peer average. It’s calculated as estimated distribution per share divided by market price per share.
On October 21, 2015, ONEOK Partners (OKS) declared a quarterly cash distribution of $0.79 per unit. OKS’s distributions remained flat for the third consecutive quarter.
The acquired West Texas LPG (liquid petroleum gas) pipeline system in the Permian Basin should continue to contribute to OKS’s Natural Gas Liquids segment’s transportation volumes in 3Q15.
Analysts expect ONEOK Partners’ (OKS) 3Q15 EBITDA to be 7% lower than its 3Q14 EBITDA and 15% higher than its 2Q15 EBITDA. ONEOK Partners missed its 2Q15 EBITDA estimates by 2%.
The consensus revenue estimate for ONEOK Partners (OKS) for the third quarter of 2015 is $2.6 billion. OKS missed revenue estimates by 23% in the second quarter of 2015.
In this series, we’ll take a look at ONEOK Partners’ revenue and EBITDA estimates for 3Q15 before its anticipated earnings release on November 3, 2015.
Kinder Morgan reported its 3Q15 earnings on October 21, 2015. Its 3Q15 revenue fell to $3.7 billion from $4.3 billion in the third quarter of last year.
Enbridge Energy Partners will report its third quarter 2015 results on November 2, 2015. It generated a total return of -27.3% since the start of 2015.
On Thursday, September 24, 2015, the EIA (U.S. Energy Information Administration) published its “Natural Gas Weekly Update” for the week ended September 18.
On Thursday, September 17, the EIA published its Natural Gas Weekly Update for the week ended September 11. US natural gas inventories in storage increased 73 Bcf, which was in line with analysts’ expectations.
Midcoast Energy Partners’ (MEP) distributable cash flows increased in 2Q15 compared to 1Q15 and 2Q14. Its distributable cash flows have shown a rising trend since listing.
About 47% of MEP’s contracts are commodity price sensitive. These are keep-whole contracts, percent-of-proceeds contracts, and percent-of-liquids contract.
Midcoast Energy Partners’ (MEP) natural gas throughput volumes fell in 2Q15 compared to 1Q15 and 2Q14. The decrease was primarily due to the low commodity price environment for natural gas and NGLs.
Midcoast Energy Partners’ (MEP) year-to-date total returns are -12.2%. It gathers, processes, transports, and markets natural gas and NGLs (natural gas liquids).
On September 10, the EIA published its Natural Gas Weekly Update for the week ended September 4. US natural gas inventories in storage increased 68 Bcf, causing inventories to rise to 3,261 Bcf.
In the second quarter of 2015, OKS issued ~5.5 million common units through its at-the-market program. In 1Q15, ONEOK Partners issued ~1.7 million common units through this program.
After the 32 Bcf build in the week ended July 31, natural gas inventories were ~23% higher than last year’s levels and 2.2% higher than the five-year average.
For the next two years, ONEOK Partners expects distribution growth to be 3%. The firm’s higher yield seems to be justified by its lower-than-average forward distribution growth.
ONEOK Partners’ long-term leverage ratio target is below 4x, which is what MLP companies generally target. So its current ratio is higher than its target.
With percent-of-proceeds contracts, ONEOK gathers and processes natural gas on behalf of producer customers. Such contracts expose the segment to commodity price risks.
ONEOK Partners (OKS) is an energy MLP that gathers, processes, and transports natural gas and NGLs (natural gas liquids). It also stores and distributes NGLs.
Targa Resources Partners is a midstream energy MLP formed in 2006. The company is expanding its operations into gathering crude oil and transporting petroleum products.
After Targa Resources Partners (NGLS) announced its 1Q15 earnings on May 5, its stock performance increased marginally, from $45.09 on previous close to $45.32.
